Consider an input market. Which of the following is more likely when the input is highly specialized? A. Cllusion will exist in the product market. B. The input will be purchased in a spot market. C. The potential for opportunism in the input market increases. D. Firms may freely enter and/or exit from the industry. Consider an input market. Which of the following is more likely when the input is highly specialized? Cllusion will exist in the product market. The input will be purchased in a spot market. The potential for opportunism in the input market increases. Firms may freely enter and/or exit from the industry. A. Cllusion will exist in the product market. B. The input will be purchased in a spot market. C. The potential for opportunism in the input market increases. D. Firms may freely enter and/or exit from the industry.
Explanation / Answer
The potential for opportunism in the input market increases.C.The potential for opportunism in the input market increases.